The Tax Exempt Bonds office (TEB) of the Tax Exempt and Government Entities division conducted a questionnaire project to evaluate the compliance and record retention policies, procedures, and practices of issuers of qualified school construction bonds (QSCBs). TEB sent out, in April 2012, notices to 111 issuers of QSCBs selected to complete the questionnaire. For the first time ever, completion of a TEB questionnaire was completed entirely online. Paper copies of the questionnaire were not provided to the selected issuers. Issuers that received a letter to complete the questionnaire also received instructions on how to access and complete the online questionnaire. While access to the online questionnaire was restricted to only those issuers selected for the project, others could view the questions here.

What is a Compliance Check?

A compliance check is a review conducted by the IRS, under Title 26 of the Internal Revenue Code, which is neither an audit or an investigation under section 7605(b) nor is it an audit under section 530 of the Revenue Act of 1978.

What is a Qualified School Construction Bond?

A QSCB is a bond issued for the construction, rehabilitation, or repair of a public school facility as well as for the acquisition of land on which such a facility is to be constructed. QSCBs are bonds issued by a State, local, or tribal government within the jurisdiction where the school is located. The issuer of these bonds must designate them as QSCBs on the date of issuance. The tax-advantaged status of QSCBs remains throughout the life of the bonds if all applicable federal tax laws are satisfied while the bonds are outstanding. Section 54F of the Code provides a description of QSCBs.

The QSCB Questionnaire Project

Issuers receiving a letter requesting them to complete the questionnairewere given instructions on how to access the online questionnaire. Only those receiving a letter could access the online questionnaire. A link to the questionnaire was provided on the Tax Exempt Bond Community web page.

Procedures related to the timely identification and correction of tax violations.

Issuers select an answer to each question from the choices provided by the online questionnaire. In addition, based upon their responses to prior questions, the intuitively based questionnaire omits subsequent questions that are irrelevant to that issuer.